Inflows into Equity Funds Dip 22%; SIPs 1% in Aug

The mutual funds industry reported declining trends in net inflows in almost all categories, with the net inflows into equity schemes sharply declining 22% to ₹33,430 crore in August, down from ₹42,702 crore in July.

- BENN KOCHUVEEDAN @ Mumbai

The systematic investment plans (SIPs) saw a marginal 1% decline in inflows, pulling down the overall industry assets under management (AUM) marginally to ₹75.18 lakh crore from ₹75.35 lakh crore in July and ₹74.41 lakh crore in June.

Fund managers say there is nothing to worry about as the July inflows were exceptionally high, rising over 80% month-on-month and setting an unusually elevated benchmark that was unlikely to be sustained. Also, after aggressive allocations in July, especially in sectoral and thematic funds, which recorded their highest-ever monthly inflows, some moderation in fresh investments was expected, they said.